Capita fiasco: Cabinet Office to make some pension payments, while privatised provider continues to fall short
The Cabinet Office is due to set out plans to make payments to those affected pensioners at risk of hardship, with further information expected from the Government within the next 24 hours.
In a letter sent to all civil servants, Cat Little, Permanent Secretary at the Cabinet Office and Chief Operating Officer for the Civil Service described the situation as one that has caused hardship and falls short of the service scheme members deserve.
Swift response in cases of ill health retirement and bereavement is promised, with hopes that full service for bereavement cases will be restored by 12 February. The Public and Commercial Service (PCS) Union continues to press for the restoration of full information via the Online Member Hub.
It is obvious that the backlog at Capita will take months to clear. The union continues to respond to urgent questions raised by members and meets the Scheme Management weekly. PCS also stresses that the lessons of failed privatisation must be learned and calls for the in-sourcing of public service contracts to be accelerated.
Thousands of retired civil servants are still facing financial hardship as pensions and lump sums fail to arrive on time under Capita. Some members have explained that this is their only source of income - leaving many unable to pay bills, facing bank charges, or relying on family support.
PCS has repeatedly raised these issues with the Cabinet Office and Civil Service leadership, demanding urgent redress and a credible plan to resolve the backlog. PCS is also pressing for a compensation scheme to cover interest on overdue payments, additional financial costs caused by delays, and the distress and inconvenience suffered by pensioners.
Capita inherited a backlog of around 90,000 unresolved cases from the previous contractor, MyCSP/Equiniti. PCS knows pensioners are paying the price, with some individuals waiting more than nine months for money they are legally entitled to receive.
PCS General Secretary Fran Heathcote said:
“This situation continues to cause serious financial and emotional hardship for people who have worked and paid into their pensions all their lives. Pensioners should not have to wait months for money they are legally entitled to receive,
“The government must ensure the Civil Service pension scheme is properly resourced and preferably brought back in house.”